Nissan positions Leaf as affordable EV choice

LAS VEGAS — The redesigned 2018 Leaf unveiled here last week gives Nissan a much-needed opportunity to inject life into the low-selling electric vehicle.

Company executives expect to give the Leaf a boost starting early next year by offering a more powerful lithium ion battery for greater range, as well as faster and quieter 0-to-60 performance, zippier midrange acceleration, advanced autonomous driving features — and a sticker price lower than when the Leaf debuted as a pioneer in late 2010.

New York dealer Wayne Siegel feels the potential.

"Frankly, we didn't have much success selling the Leaf when it first came out," says Siegel, owner of Legend Nissan in Syosset, N.Y. "We're on Long Island, and our customers had range anxiety. So we didn't sell any.

"Now — this one?" he says, pointing past Nissan North America Chairman Jose Munoz to the redesigned 2018 model, "We're on board with this one. It's ​ going to knock it out of the park."

That mojo is what Munoz and his U.S. executives are seeking as they prepare to switch to Leaf 2.0.

Munoz believes Nissan has been at a disadvantage until now in selling the Leaf. Of Nissan's roughly 1,100 retailers, only about 300 have been engaged in marketing the car. Now that will change, he says.

"They all sell it, but some do a better job of it," Munoz told Automotive News. "We want everyone to get engaged, and that means that we also need to do more."

Munoz said Nissan will help dealers share best practices. Those who have done well with the Leaf will help the others.

Battery range is the game changer. The outgoing Leaf — which after nearly seven years of incremental battery improvements offers an EPA-rated battery range of 107 miles — sold just 14,006 units last year.

The 2018 version promises a 150-mile range on a full charge. That is still sharply lower than other electric cars. General Motors' Chevrolet Bolt offers a 238-mile range and the new Tesla Model 3 delivers 220 miles.

But Nissan is taking a left turn in its retail strategy for 2018. The company is cutting the price to attract buyers who want an EV for less.

The new Leaf will start at $30,875, including shipping. That is $690 less than the outgoing version, and less than the Leaf's original cost, said Ken Kcomt, Nissan's director of product planning for passenger cars and sports cars. The Leaf sold for $33,600, including shipping, when it first appeared, offering just a 73-mile range on a full charge.

"There are EV competitors out there today with greater range," Kcomt said. "But that extra range comes with a higher price. Our customers told us that affordability was their biggest issue. They're not necessarily willing to pay for more range if they don't need it. For 80 percent of EV buyers, 150 miles is a good number."

For the other 20 percent, Nissan intends to deliver a bigger and longer-range battery option in 2019. Nissan says the battery choice is akin to customers choosing between four- and six-cylinder engine options.

Nissan is also changing the Leaf's strategic marketing message, according to Brian Maragno, director of EV marketing and sales strategy. Nissan originally sold the Leaf on its environmental appeal, reaching for consumers who wanted to buy green and not use fossil fuel.

Starting with the 2018 model, the Leaf will be marketed for what Nissan is calling "EV-ness," Maragno said.

That essentially means that when it comes to EVs in 2018, consumers get it. They understand that the cars do not use gasoline and represent a smaller carbon footprint.

Instead of telling consumers what they already know, Nissan will market the car's performance, improved ride, technology and comfort, Maragno said. The new Leaf comes with a higher-grade steering wheel, a flashier display screen and more sedate styling.

But the Leaf still faces a number of challenges.

For starters, it is a sedan in an era of shrinking industry car sales. It is launching at a less than optimal time. Nissan's U.S. showrooms will get the car early next year — and winter is a tough time to excite customers.

Nissan also has more EV competitors than ever. Chevrolet's Bolt is a true EV, unlike the Chevrolet Volt plug-in hybrid that challenged the first-generation Leaf. And then there is Tesla, which offers a range of electric vehicles. Ford and BMW also offer EVs, with others — including Toyota and Volkswagen — lining up to follow suit.